"It is a variation on that very old political theme: Bush made me do it. This despite the fact that in early 2003, Congress had been warned by the director of the federal office responsible for overseeing Fannie and Freddie, Armando Falcon, who said “in a 118-page report of the companies’ potential for a catastrophic failure that could jeopardize the economy.” This was followed by efforts by the Bush administration to rein in Fannie and Freddy somewhat via new Treasury rules.
But Frank and other Democrats still opposed tighter regulation, Frank most notably in his public statements saying there was nothing wrong with Fannie and Freddie. He and other House Democrats also sent a letter to President George W. Bush in June 2004, saying the proposed crackdown could “weaken affordable housing performance . . . by emphasizing only safety and soundness.’’
Friday, October 15, 2010